Also known as a rental agreement, a lease is a written contract between the owner of a property (the owner) and the tenant who takes care of it for rent. The contract defines the conditions on the basis of which the property is rented, such as: description of the property (address, type and size), monthly rent, deposit, purpose for which the property can be used (residential or commercial property) and duration of the contract. Its terms and conditions can be negotiated, but once signed, it binds both the lessor and the tenant. It also lays down the conditions under which the contract may be terminated. When the tenant who works at a college at the University of Delhi expressed surprise at the strange length of the lease`s validity, Aggarwal shrugged his shoulders and said, «This is the norm.» If the agreement includes a deposit, add more Rs100 and Rs1,100 as a registration fee – bringing the total cost to Rs6,240. This does not apply to fees due to lawyers or other intermediaries for all paperwork. Most housing rental agreements usually expire after 11 months. This is only done to avoid the payment of a higher stamp duty. If the term of a rental agreement is one year or more, the contract must be registered with the court and a higher stamp duty must be paid. If a property is rented for 24 months at a monthly rent of Rs20,000 for the first 12 months and Rs22,000 per month for the following 12 months. The registration fee for this agreement would be: 2% of the average rent for 12 months: Rs5.040, (average monthly rent is Rs21.000, the average annual rent is 21000 *12 and 2% of it is Rs5.040). A rental agreement is a document that is addressed to the tenant and the landlord, that protects the interests of both parties and also describes the rights, obligations, roles and responsibilities of both. This lease is renewed for an additional 11 months, thus avoiding further complications on the part of both parties.
Most leases are signed for 11 months in order to avoid stamp duty and other fees Housing.com has set up a fully digital and contactless service to create rental contracts. If you want to complete the formalities quickly and without problems, you just need to fill in the details, create the rental agreement online, sign the contract digitally and mark it in seconds by e-stamp. In Haryana, the stamp duty on rental contracts varies between 1.5 and 3% of the average annual rent, depending on the rental period indicated in the document. The registration fee varies between Rs 1,500 and Rs 16,000, depending on the rental amount. In Uttar Pradesh, for example, the stamp duty on rental contracts is 4% of the annual rent plus the deposit, while the registration fee is 2% of the rental deposit. Registration of the contract becomes mandatory if the rental period is greater than or equal to 12 months. Unlike an 11-month agreement that remains valid despite the lack of registration, a lease for a period of 12 months or more would be null and void if it is not registered. Leases entered into under the provisions of the Indian Easements Act 1882 as vacation and licensing agreements for a period of 11 months are not valid under the Rent Control Acts.
Rent control laws, which differ from state to state, have all leases concluded for a period of at least one year within their area of jurisdiction. These archaic laws, widely applied around the world after World War II, set out strict rules that made renting more difficult, especially for the landlord. Landlords who rent their premises under these laws will find it extremely difficult to revise rents and evict tenants. Under the Rent Control Act in Delhi, for example, landlords can increase rent by 10 percent every three years, while the common practice is to increase rent by 10 percent per year. . . .